Its the Housing Thing, Stupid
October 29, 1929...
The Stock Market crashes, oversold shares plummet in value, margin holders carrying shares with only 10% equity ownership quickly default on margin calls and lose their shares. Those shares are bought back by the companies that issued them at par values.
September 16, 2008...
The Stock Market crashes, oversold housing plummets in value, homeowners holding property with 0% equity default on their payments and go into foreclosure. Banks and financial institutions holding those foreclosed properties find themselves unable to re sell those properties at any where near the values of the loans that were issued for them. Like an anchor tied to a drowning man, the financial institutions quickly drown in a sea of bad debt.
Any Questions?
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Banks knew better when they
Banks knew better when they started giving those loans...
Derivatives sellers knew better when they repackaged and sold those loans...
Our Treasury Secretary and King of the Federal Reserve know better than to print all that money to bail out all those banks and insurers.
Problem was and is... we can't stop them.
The unborn take it in the
The unborn take it in the chops again, since no one among the living wants to own up to the mess.
Like the degrading environment, we will hand those future unborn citizens another ticking timebomb.
Why do the young hate the old?
Any questions?